But sometimes, very rarely, they are in control.
Not so much in the case of RPTs (major shareholders will almost often make sure they have enough "friendly" parties to push the deal through), but when the major shareholders screw up.
And that is exactly what seems to have happened at the AGM of Wuyi Pharma.
David Webb wrote:
Wuyi Pharma (1889): everything failed at our AGM
Company announcement, 2-Jun-2016
With a voting turnout of just 0.63%, all the resolutions were defeated, because the brothers who control the company failed to vote. Incidentally, this Cayman-incorporated company, which has no mainland listing, held its AGM in Fuzhou, making it hard for HK shareholders to attend. Serves them right.
According to the announcement:
- The audited financial statements were not received and considered
- Three directors were not re-elected
- The auditor was not re-appointed
- A general mandate to issue new shares was not given
Why were the small shareholders so angry and/or disappointed?
Besides holding the AGM in a remote location, the below share graph might also have a lot to do with that: